The marriage between Exelon and PSEG would create the largest electric utility in the United States. The policy implications could loom even larger, however. Standing at risk is nothing less than...
Coal's Raw Deal
The bias in RTO markets, and how FERC might fix it.
gaining a hedge.
Perhaps the last word on this problem should belong to one Neal A. Fitch, a regulatory specialist at Reliant Energy Inc.
Mr. Fitch suggests that RTO skill in managing real-time grid operations may not translate to the speculative world of financial derivatives:
"While it has historically been reasonable," he writes, "for the RTO to [act] as the market operator and/or clearinghouse in short-term markets … it is less clear whether or not the RTO should pay a significant role in long-term financial markets that ... deal exclusively with risk management.
"It may be the case that [others] can provide ... long-term FTRs without the added complexity."